The 0.20% is the avg rate that exchanges charge. So what I was getting at is charge a fee, thats fair (for the automation etc) - enough to cover exchange fees and a bit extra for the convenience. A 900% increase for this service compared to what exchange fees are seems a bit excessive.
Tho when you combine the pool + autoexchange fee compared to other pools its about in line (e.g. clevermining, middlecoin, waffle which payout in btc). Its a good thing the main pool fee is 0.5% as it helps and keeps the pool competitive (multipool that payout in btc are 2%-4%).
TMB being most profitable and in the middle its not so bad once you compare apples with apples.